Pioneer Foods Grain and grit
Rockyish results from Pioneer: revenue up 10% to R18.6billion for the 12 months to September, with volumes down by about 5% and selling prices up by 15% on average, and headline earnings declining by a substantial 17% to R606 million, due mainly to once-off costs associated with a BEE deal. The agri business was particularly hard hit, with a net loss of R49million on 12% growth – cheap chicken imports, again. And beverages, even worse, with a 35% decline in operating profit. On the upside, good volume growth in breakfast cereals, especially Weet-Bix, with Sasko so-so, growing revenue 10% and the rice business benefiting from high maize meal prices and presenting the oriental grain as an affordable alternative.
Comment: When it comes to results time, Pioneer, with its preponderance of staples, is a good dipstick for how the actual consumer is doing out there.